South Africa Electricity Supply System: The Past, Present and The Future

This paper reviews the electricity industry in South Africa, which is undergoing rapid and profound changes and restructuring. It has been an industrial sector under the sole preserve of Eskom, a state monopoly institution. The liberalization and privatization initiative of the South African government indicates a significant change in economic policy. The collapse of centrally planned economies, and the rapid development of Southeast Asian economies in the 1980s and 90s, have made governments and institutions worldwide acknowledge the importance of involving the private sector in national infrastructure development and management. Global trends show a shift towards deregulation and the introduction of competition in the electricity industry, as a means of providing sufficient energy supplies and lower energy prices to end-users. South Africa has seen the emergence of Independent Power Producers as a significant factor in power system planning and operation mix. This paper addresses these developments.